TMI Blog2016 (6) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... once the entry was reversed, it is as if that the Cenvat credit was not available - demand set aside - appeal allowed - decided in favor of assessee. - E/1214/2012-SM - 20448/2016 - Dated:- 22-6-2016 - S. S Garg (Judicial Member) For the Appellant : K. Parameshwaran For the Respondent : N. Jagadish ORDER S. S Garg (Judicial Member) The present appeal is directed against the impugned order-in-appeal No. 120/2011 dated 02.03.2012 wherein the learned Commissioner (Appeals) has upheld the order-in-original. 2. Briefly the facts of the present case are that the appellants are engaged in the manufacture of woolen/blended fabrics falling under Chapter 51 55 of Schedule to Central Excise Tariff Act 1985. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a mere book entry by the appellant but the said unintended error resulting in taking excess/ineligible credit was duly corrected, immediately by reversing the said credit much before the issuance of show-cause notice and without the same being utilized in any manner whatsoever and this factual position has not been doubted by both the authorities below. He further submitted that the learned Commissioner (Appeals) has wrongly relied upon the decision of the Honble Supreme Court in the case of UOI Vs Ind-Swift Laboratories Ltd., [2011-TIOL-799-HC-KAR-CX as well as two circulars of the CBEC dated 03.09.2009 and 14.03.2011 as the same are not applicable in the present case. The learned counsel placed reliance upon the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out utilisation, no liability for payment of interest or penalty would arise thereof. The learned counsel further submitted that similar principles have also been laid down by CESTAT, Delhi inter alia in the case of Grasim Bhiwani Textiles Ltd Vs CCE [2016(332)ELT 865]. On the other hand learned A.R. submitted that the appellant has irregularly taken credit and on being pointed out by the audit, the same has been reversed. In terms of the provisions contained in the CENVAT Credit Rules, taking or utilizing irregular CENVAT credit itself is sufficient for imposing penalty and in view of the Board Circular dated 03.09.2009 if credit had been taken wrongly even if it has not been utilised, the interest shall be recoverable in terms of Rule 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
